Vietnam Daily Market Recap Dec 21
Daily Market Recap 21/12/2020 229
Dear Valued Clients,
We would like to send you our Daily Market Recap for today
Market Commentary: Real Estates stocks’ performance fueled the VN-INDEX rise
The VN-INDEX gained 13.6pts at its Monday close thanks to the strong support from Real Estates sector. Vietnam’s main stocks index optimistically began today’s session and quickly climbed to its intraday high of 1,081.6 (+1.3%) as most large caps started trading in the green. Specifically, VHM and VIC jumped 2.1% and 1.6%, respectively, contributing a combined 3.2pts to the index’s rose. However, GVR emerged to be today’s leading stock, rising 6.9% to VND27,100 and alone adding 1.9pts to the index’s advance. Other stocks from the Financials sector also joined the rally, including VPB (+4.3%), HDB (+5.3%), BID (+1.0%), TPB (+6.8%), and EIB (+7.0%) and further strengthened the index’s gain. On the downside, top laggards today included SAB (-0.9%), MSN (-0.4%), KOS (-7.0%), VHC (-2.7%), and HPG (-0.1%). At the end of the session, the VN-INDEX surged 1.3% to land at 1,081.1pts and the HNX-INDEX also rose 3.0% to settle at 182.1pts.
All sectors rose today, led by Real Estate (+1.6%), Utilities (+1.5%), and Financials (+1.4%). Top index movers included GVR (+6.9%), VHM (+2.1%), VIC (+1.6%), VPB (+4.3%), and GAS (+1.7%). Top index laggards consisted of SAB (-0.9%), MSN (-0.4%), KOS (-7.0%), VHC (-2.7%), and HPG (-0.1%). Top three major put-through transactions were VJC with 1.4m shares (VND177.8bn), TCB with 6.2m shares (VND169.4bn), and FUEVFVND with 5.8m shares (VND94.2bn).
Foreigners net bought on HOSE to the amount of VND39.6bn, and also net bought on HNX to the amount of VND0.2bn. They mainly bought HPG (VND126.0bn), FUEVFVND (VND98.0bn), and VRE (VND70.5bn); and mainly sold VRE (VND90.4bn), HPG (VND72.7bn), and VNM (VND69.5bn).
Oil falls below US$50 with virus mutation raising lockdown risks
Oil lost more than US$2, the most in seven weeks, on concern a mutation of Covid-19 discovered in the U.K. could speed transmission of the virus and lead to more lockdowns. Brent futures fell below US$50/barrel. More than 16m Britons are now required to stay at home after a full lockdown came into force in London and the southeast of England, with some European countries limiting travel with the U.K. A stronger dollar also reduced the appeal of commodities such as oil that are priced in the currency. Meanwhile, physical oil prices are cooling as Asian refiners ease purchases after an earlier-than-usual buying spree. Abu Dhabi’s Murban crude was sold last week on the spot market below its official price for the first time since August, while differentials for Russia’s ESPO and Urals have also slumped. The structure of the futures curve weakened Monday, indicating supply concerns. (Bloomberg)
Export target of US$41bn within reach for Vietnam’s agricultural sector
Though COVID-19 has hampered exports, the agricultural sector remains confident of achieving this year’s export target of more than US$41bn. The coronavirus outbreak has created obstacles to production and trade, while severe natural disasters such as drought and saltwater intrusion, especially in the Mekong Delta, along with plant and animal diseases posed further challenges to the sector this year. Most key agricultural exports posted declines in the early months of 2020. Facing that fact, the agricultural sector has conducted policies flexibly to fulfil export targets, Minister of Agriculture and Rural Development Nguyen Xuan Cuong said. Thanks to that, agro-forestry-fishery exports are forecast to surpass the goal of US$41bn this year. Exports to nearly 200 markets, including large markets such as the US, the EU, Japan, and China, earned Viet Nam second place in Southeast Asia and 15th in the world in terms of agro-forestry-fishery exports, he said. The sector has also managed to pave the way for different fruits to enter new markets, like fresh lychee to Japan and pomelo to Chile. Notably, he said, rice continues to record strong increases in exports. The Mekong Delta, the largest agricultural hub in Viet Nam, reaped a bumper rice harvest despite the historic drought, thanks to crop rescheduling. Surging food demand amid COVID-19 also provided Viet Nam with the opportunity to boost rice exports. Strong demand from a host of markets fuelled rising export prices for Vietnamese husked rice, which are now about US$500/tonne. Free trade deals, especially the EU-Vietnam Free Trade Agreement (EVFTA), have also opened up opportunities for the commodity. Deputy Minister Phung Duc Tien said as soon as Prime Minister Nguyen Xuan Phuc approved the EVFTA implementation plan, the ministry built an action programme for the agricultural sector. As a result, from the first month the trade pact took effect, in August, shipments of agro-forestry-fishery products to the EU grew 15-17% against a year earlier, he said, adding that the sector has maintained its focus on traditional markets like China, the US, and Japan. (Vietnamnet.vn)
Notable Corporate Events
Thanh Cong Textile Garment Investment Trading JSC (TCM VN, HOSE) – Dividend payment: TCM has set 08 Jan 2021 to be the record date for paying the first 2020 cash dividend of VND500/share. The payment will be made on 04 Feb 2021. (Ndh.vn)
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